MAYOR HAHN AND CONGRESSWOMAN ROYBAL-ALLARD ANNOUNCE HOMELAND SECURITY DEPARTMENT AGREEMENT TO PROVIDE $256.5 MILLION FOR INSTALLING PERMANENT EXPLOSIVE DETECTION BAGGAGE SCREENING SYSTEMS AT LOS ANGELES AIRPORTS

Federal Grant Is Largest Received in LAX History

The federal reimbursement represents 75 percent of the total costs at both airports estimated at $313,408,000 and $28,548,000 for LAX and ONT, respectively. The LAX portion of the reimbursement ($235,056,000) is the largest federal grant received for a single project at LAX in the airport's 75-year history.

"This agreement gives Los Angeles World Airports much-needed resources to meet the security challenges our airports face in the post-Sept. 11 world," said Mayor Hahn, who, as chairman of the U.S. Conference of Mayors Airport Safety and Security Task Force, lobbied senior DHS officials and its Transportation Security Administration for funds to assist LAX and ONT -- as well as all other U.S. airports -- on capital improvements resulting from new aviation security laws passed after the terrorist attacks of Sept. 11, 2001.

LAX and ONT serve more than a combined 63 million passengers annually, generating over $65 billion in economic activity, and providing nearly 470,000 jobs.

"These funds will allow our City's airports to improve security measures with state-of-the-art, in-line explosive detection systems at the two airports and complement my Master Plan efforts to make LAX the safest, most secure airport in America," Mayor Hahn added.

Congresswoman Lucille Roybal-Allard, representing California's 34th District and a member of the House Appropriations Committee's Subcommittee on Homeland Security, said, "These grants provide critically needed federal funds to increase security in our region. With this money, local officials can lessen the vulnerability of aviation transportation and increase passenger safety at our airports. By safeguarding LAX and Ontario, this project will protect two critical links in our regional economy." Congresswoman Roybal-Allard used her position on the Subcommittee on Homeland Security to urge the Administration to allocate these much-needed funds to the Los Angeles airports.

Los Angeles Board of Airport Commissioners Ted Stein stated, "We are committed to ensuring LAX and ONT are the safest and most secure airports in America." He welcomed the news, adding that LAWA has expended a combined $100.4 million to-date in Sept. 11-related security costs at the two airports, primarily for additional law enforcement personnel and explosive detection canines, increased insurance coverage, security equipment and supplies, and capital improvements to the airports' perimeter fencing, surveillance systems and passenger terminals. However, he noted that the federal government mandating new security measures has to date reimbursed LAWA only $15.6 million for these costs.

The Letter of Intent is the result of an agreement negotiated between LAWA and the TSA outlining the federal agency's intent to reimburse LAWA, from TSA's future appropriations over the next four years, 75 percent of LAWA's cost of capital improvements to install the in-line explosive detection systems, while LAWA agrees to cover the remaining 25 percent. LAWA agrees to initially fund the projects at both airports. The TSA will reimburse LAWA $55 million for federal Fiscal Year 2004, and $67,155,666.67 for each of the three subsequent years. These figures do not include the cost of the explosive detection equipment, which TSA will purchase, install and test, according to a schedule agreed upon with LAWA.

Permitted capital improvement costs include: preliminary site preparations, structural reinforcement to support new equipment, electrical work, heating and air conditioning and other environmental improvements, as well as conveyor belts and tables, and physical enhancements necessary to operate an in-line system.

LAX Terminals 1 through 8 and ONT will be completed within 24 months, LAWA officials said. The Tom Bradley International Terminal at LAX is expected to be completed within 36 months.

LAX was the only major U.S. airport to meet the Dec. 31, 2002, federal mandate to electronically screen 100 percent of all checked baggage. The interim solution currently operating in the passenger terminals includes nearly 60 explosive detection systems and 270 explosive trace detection machines, almost all of which are located in the passenger terminal ticketing lobbies.

As the world's busiest origin-and-destination airport, more passengers and checked baggage are screened at LAX than any other airport in the world. On average, more than 150,000 bags are checked daily at the airport - more bags than any other U.S. airport.